12.The purpose of a flexible budget is to: A. allow management some latitude in meeting goals. B. eliminate fluctuations in production reports by ignoring variable costs. C. compare actual and budgeted results at virtually any level of activity. D. reduce the time to prepare the annual budget. 13. When using a flexible budget, a decrease in activity within the relevant range: A) decreases variable cost per unit. B) decreases total costs. C) increases total fixed costs. D) increases variable cost per unit. 14. The relative combination is which a company's product is sold A. operating leverage C. margin of safety B. sales mix D. break even point 15. A budget that is based on the actual activity of a period is known as a: A) continuous budget. C) static budget. B) flexible budget. D) master budget. 16. The fixed manufacturing overhead budget variance equals: A) Actual fixed manufacturing overhead cost--Applied fixed manufacturing overhead cost. B) Actual fixed manufacturing overhead cost--Budgeted fixed manufacturin overhead cost. C) Budgeted fixed manufacturing overhead cost--Applied fixed manufactu overhead cost. D) Actual fixed manufacturing overhead cost-- (Actual hours x Standard f overhead rate) 17. Which of the following variances is least significant from a standpoint of cos A) materials price variance. B) labor efficiency variance. C) fixed overhead volume variance. D) variable overhead spending variance. 18.The manufacturing overhead variance that is a measure of capacity utilizatio ading yariance